Persisting Gender Gap Shadows Workplace Financial Wellness Programs

Research by HerMoney Media and Principal Financial Group highlights a continuing gender gap in workplace financial wellness programs. The study finds that even though men and women save similar amounts of their incomes, significant differences exist in their confidence and understanding of money management and investing.

Survey Overview

The 2023 State of Women survey, encompassing 900 full-time employees from small and midsize businesses, discloses that 45% of women feel confident about money management, compared to 58% of men. Furthermore, only 22% of women perceive themselves as knowledgeable about investing, contrasting sharply with 46% of men. This confidence deficit is prevalent even among high-earning women, emphasizing the ubiquity of the issue.

Investment Approach

The survey also sheds light on women's propensity for long-term investment strategies, with 55% opting to retain their investments during economic downturns, compared to 40% of men. This cautious and stable approach has historically resulted in superior returns for women, demonstrating the efficacy of enduring market volatility.

"The good news is that women are focused on precisely the right financial threats and aren't allowing a volatile economy to derail them. In fact, when it comes to making investing decisions, women—who have long had a reputation for being risk-averse—seem to have turned an important corner in their investment decisions," says Jean Chatzky, CEO of HerMoney.com. 

Seeking Financial Knowledge

In financial guidance, 59% of women reported not collaborating with a financial professional, even though 60% regarded them as their most trusted financial resource. However, women surpass men in proactively seeking financial knowledge through diverse resources such as podcasts, books, and workplace programs.

"While employees' needs are varied, almost everyone can benefit from more guidance, education, and support to build their financial acumen and confidence," mentions Teresa Hassara, senior vice president of workplace savings and retirement solutions at Principal Financial Group. "The more personalized the experience, the more success we believe individuals will have when it comes to achieving long-term financial security and retirement goals."

Workplace Financial Wellness Programs

The research also delves into the evolution of workplace financial wellness programs and their differing impacts on men and women. While women correlate financial wellness with peace and a lack of financial stress, men have reported a more substantial reduction in stress levels due to these programs. Men also attribute more benefits to these programs regarding emergency savings, debt reduction, and goal setting.

Addressing the Disparity

The prevailing gender disparity in confidence and perceived knowledge is concerning. Women's underutilization of financial advisors and the gender-specific differences in the benefits derived from financial wellness programs necessitate a more inclusive and gender-sensitive approach to formulating these programs.

Employer's Role

Employers are pivotal in mitigating these disparities by providing more personalized and intentional financial wellness solutions. A balanced approach incorporating digital, one-on-one, and advisor interactions can significantly enhance employee financial understanding and confidence. Addressing the imbalances in these programs' perceived value and support is crucial, especially for women.

Conclusion

The gender gap in financial wellness and confidence is enduring, with women demonstrating lower confidence and perceived knowledge despite comparable savings rates and more stable investment strategies. The disparities highlighted by the research are not merely a women's issue but represent a broader societal problem that demands collective efforts to ensure equitable opportunities and support for everyone in achieving financial well-being.

The research underscores the urgent need for enhanced support, education, and resources to empower women in building their financial confidence and stability. While women focus on the right financial strategies and are resilient in economic volatility, the existing support structures are inadequate. The gender disparities in financial wellness necessitate immediate and sustained efforts to foster an environment of equality and support, ensuring all employees' financial stability and well-being.